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March 9, 2000 -- Because the federal income
tax is the biggest and usually the first tax we see listed
on our pay stubs, we naturally tend to focus on it.
But state government takes a bite out
of our spending money, too. Bankrate will help you stay on
top of what your localities are collecting -- income, sales,
personal property or investment taxes, or often a combination
of all.
Here's a look at some recent tax actions
across the nation.
Illinois
tax scofflaws listed online
SPRINGFIELD -- Efforts by Illinois revenue collectors
to shame tax scofflaws into paying up seem to be working.
Last year, the state's Department of Revenue
began posting the names of delinquent
taxpayers on its Web site.
The list now contains the names of 229 individuals and businesses
that together owe the state more than $16.2 million in state
taxes.
Since the posting began, state officials
say 903 listed taxpayers have coughed up nearly $10 million
and 169 more have entered into formal agreements with the
state to pay another $9 million in installments. Of the total
collected, approximately $2 million has gone to pay local
government taxes.
"The Department of Revenue's efforts
today should assure those taxpayers who pay their taxes that
we will do everything in our power to collect final tax debt
owed the state," Revenue Director Glen Bower said.
Certified notices were mailed last March
to 5,213 taxpayers who had owed more than $10,000 each in
taxes for at least six months, telling them that unless they
made full payment or agreed to payment plans, their names
would be published under the new law.
Cheaper snacking on the way in Maine
AUGUSTA -- Snackers in Maine may find their treats soon will be a bit cheaper.
State election officials have cleared
the way for a referendum on repealing Maine's tax on doughnuts,
ice cream and other snacks. But legislators may beat the electorate
to the punch. There is bipartisan agreement that the snack
tax should be repealed this session.
The Don't Tax Food Coalition of Maine
led a group of anti-snack tax activists in celebrating the
move. The group noted that when the snack tax was enacted
in 1991, the state was facing a fiscal crisis and looking
for ways to raise money. It was seen as a temporary "quick
fix" measure at the time, according to the coalition.
While staples were protected from the
sales tax, the 5.5 percent tax was imposed on foods sold for
consumption with little or no preparation. They include such
foods as corn and potato chips, popped popcorn, granola bars,
bread sticks, cakes, pies, ice cream, marshmallows and beef
jerky.
Lawmakers say the state has enough surplus
to cushion the tax loss, which would add up to about $14.5
million over the current budget cycle.
Pennsylvania
GOP looking to help heirs
HARRISBURG -- Pennsylvania's inheritance tax will be a target
of state Republican leaders when budget deliberations begin
this spring between the governor and the legislature.
Republican Gov. Tom Ridge already has
proposed a cut of $644 million in taxes for low-income families,
businesses and homeowners, including a $330 million property
tax rebate. But he does not include any reduction in the inheritance
tax.
State senators, who are leading the movement,
want a $100 million reduction in the tax that would affect
lineal and non-lineal descendants. Pennsylvania's inheritance
tax is 6 percent on assets left to descendants and 15 percent
bequeathed to all others. In addition, the state taxes the
total value of any estate, whereas the federal government
taxes only estates worth more than $675,000 in 2000.
Anti-tax advocates believe an inheritance
tax cut is possible along with the governor's other proposals
because they expect a larger budget surplus than has been
officially projected.
Ridge says he supports an inheritance
tax cut, but doubts there will be enough money to accomplish
his cuts plus repeal inheritance taxes simultaneously.
Judge
says Michigan tribes can end casino payments
GRAND RAPIDS -- A portion of slot machine earnings from Native-American
casinos in Michigan will no longer go to state coffers, thanks
to a federal judge's ruling.
Under a 1993 agreement, seven of the state's
tribes had been paying 8 percent of slot winnings to Michigan's
Strategic Fund. The payments were to continue as long as the
tribes "collectively enjoy the exclusive right to operate
electronic games of chance."
But in 1996 tribal leaders decided to
stop payments because state voters OK'd casino gambling in
Detroit, ending the tribes' exclusive right to operate gambling
machines. Federal courts initially rejected the tribal argument,
saying that since the Detroit casinos were not yet a reality
the tribes still had a monopoly.
But when state officials signed gambling
compacts with four more tribes, the seven original tribes
again claimed their monopoly was broken. This time U.S. District
Judge Douglas W. Hillman in Grand Rapids agreed.
The tribes released from the payments
by the ruling are the Saginaw Chippewa, the Sault Ste. Marie
Tribe of Chippewa Indians, the Grand Traverse Band of Ottawa
and Chippewa Indians, the Keweenaw Bay Indian Community, the
Hannahville Indian Community, the Bay Mills Indian Community
and the Lac View Desert Band of Lake Superior Chippewa Indians.
Michigan is appealing the ruling.
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